What does Alloy negotiate with designated and approved suppliers on behalf of the Alloy system?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, when appropriate, negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of the System. These arrangements will include certain benefits to franchisees like having available sources of supply on a regular basis and may, with certain applied suppliers but not all suppliers, include negotiated price terms for the franchisees' benefit. At the present time there are no purchasing or distribution cooperatives established by us. We do not give you any benefits, like renewal or the granting of additional franchises, based on your buying any items from our approved suppliers.
We may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products, equipment, or services to some or all of the centers in our system. If we do establish those types of alliances or programs, we may limit the number of approved suppliers with whom you may deal, we may designate sources that you must use for some or all products, equipment and services, and we may refuse to approve proposals from franchisees to add new suppliers if we believe that approval would not be in the best interests of the System.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy may negotiate purchase arrangements, including price terms, with designated and approved suppliers on behalf of the entire Alloy system. These negotiations aim to provide benefits to franchisees, such as ensuring consistent sources of supply. While these arrangements may include negotiated price terms with certain suppliers, this is not guaranteed across all suppliers.
This means that as an Alloy franchisee, you might benefit from Alloy's negotiations with suppliers, potentially securing better pricing and reliable supply chains. However, it's important to note that not all suppliers will offer negotiated price terms, so franchisees should still compare costs and consider their options when making purchasing decisions. This also means that Alloy does not guarantee the lowest price, but rather a reliable source of supply.
It is also important to note that Alloy may establish strategic alliances or preferred vendor programs with suppliers that are willing to supply some products, equipment, or services to some or all of the centers in their system. If Alloy establishes these types of alliances or programs, they may limit the number of approved suppliers with whom you may deal, designate sources that you must use for some or all products, equipment and services, and may refuse to approve proposals from franchisees to add new suppliers if they believe that approval would not be in the best interests of the System.